The process of depositing a coating of material on a surface is known as deposition. Several processes are involved in the deposition of thin films, including atom adsorption, atom diffusion on the wafer surface, and coalescence at crucial spots.
Deposition is a critical manufacturing process in the production of a wide range of opto-electronic, solid-state, and medical equipment and products, such as consumer electronics, semiconductor lasers, fibre lasers, LED displays, optical filters, compound semiconductors, and so on. Growth in the consumer electronics sector, rise in the automotive industry, increasing usage of advanced medical equipment, expanding need for environmentally friendly coating processes, rising silicon wafer demand, and so on are some of the primary reasons why firms are employing deposition equipment. The global deposition equipment market is predicted to rise to US$25.77 billion in 2023, growing at a CAGR of 13.75%, during the forecast period.
According to this report, the global deposition equipment market can be divided into four regions: Asia Pacific, North America, Europe, and Rest of the World. The countries covered in North America region are the US, Mexico, and Canada, while Europe includes Germany, Spain, UK, Italy, France, and the Rest of Europe. Moreover, China, Japan, South Korea, and Rest of Asia Pacific are included in the Asia Pacific region.
The Asia Pacific dominated the market owing to the increase in growth in end-user applications such as capacitors, transistors, inductors, and resistors, coupled with rapid adoption of smartphones and laptops. China held the largest share in the Asia Pacific deposition equipment market, owing to the strong economic growth in the region, the growing demand for microelectronics, automotive, photovoltaic cells coupled with emerging trend of electric/hybrid vehicles and green vehicles. Moreover, North America is anticipated to be the fastest growing region in the forecasted period due to the shifting consumer focus toward smart home automation and new product innovations. The US held the major share in the North American deposition equipment market, owing to the high disposable income, huge demand for the high-end products, increased adoption rate of the latest technologies, presence of several leading manufacturers of the electronics, and the high standards of living.
Top Impacting Factors:
Driver: Growth in Consumer Electronics Industry
Consumer electronics, often known as home electronics, are the devices designed for everyday use, generally in private homes. Devices used for entertainment, communication, and recreation are all examples of consumer electronics. The consumption of electronic devices such as smartphones, tablets and laptops, had increased over the years and one of the primary factors driving the growth of consumer electronics is the growing preference for smart electronic devices. Semi conductor chips, which are used as components in power devices, compactness optical sensors, and light emitters, are the basic requirement for the manufacturing of these smart electronic devices. A semiconductor material is a device that allows electric current to pass through it and is used in devices such as CPUs. It is made up of a large number of transistors. The surge in demand for consumer electronics has directly impacted the growth in deposition equipment market, especially due to growth in demand for semiconductor market, which is a major end-user of deposition equipment market.
The deposition equipment’s are used in the manufacturing of semiconductors, integrated circuits, transistors, etc. Advanced semiconductor production might entail thousands of process stages, making the method extremely difficult. Each piece of equipment in a process step has the potential to fail, resulting in a default and potentially lowering production yield. Advanced semiconductor production can entail thousands of pieces purchased from a range of suppliers. Chambers, pumps, seals, and valves are examples of these components. Corrosion, pressure regulator malfunction, and improperly sized or fitted seals are all common fabrication equipment issues. Any of these issues could have a significant impact on the performance and quality of fabrication equipment. As a result, functional failures and difficulties might occur at any time, causing delays in product creation and delivery, thus disrupting the supply chain.
Semiconductors will play a critical role in the development and advancement of automotive technology used in connected cars and electrified vehicles. The constantly developing automotive sector offers a ripe opportunity for automotive semiconductors to support higher connectivity, battery performance in EVs, improved sensors, and other technologies. Semiconductors are used in vehicles as microcontrollers to control emission release and antilock brakes. As autonomous vehicles evolved, semiconductor technology generated chips that are utilized to equip the vehicle with eyes in the form of cameras and sensors located around its exterior. As a result, the growing development of semiconductor chips will drive up the demand for deposition equipment.
The COVID-19 Analysis:
The outbreak of COVID-19 brought in a mixed impact on the overall deposition equipment market, which were majorly positive in nature. Early during the outbreak, several firms had to suspend production completely and this, along with global travel restrictions, meant that there were some severe supply concerns. As economic activity improved, the market for semiconductors recovered swiftly, as corporations began to renew their investments in cloud infrastructure and as artificial intelligence and linked gadgets become increasingly ubiquitous in the society. The sudden increase in demand for semiconductor sector during the second half of 2020 and start of 2021 increased demand for deposition equipment.
Analysis of Key Players:
The global deposition equipment market is highly consolidated. The PVD equipment market is almost a monopoly controlled by Applied Materials. The ALD equipment market is led by Tokyo Electron and ASM International. The key players of the global deposition equipment market are:
Some of the strategies among key players in the market for deposition equipment are product launches, mergers, acquisitions, and collaborations. For instance, in July 2022, ASM International launched TENZATM ALD, an innovative single wafer atomic layer deposition (ALD) process technology for 300mm wafers. TENZATM ALD is optimized for gap-fill applications and provides the best film quality, conformal coverage through the full trench and highest productivity in its class. Whereas, in September 2022, Aixtron SE launched the company’s new G10-SiC 200 mm system for high volume manufacturing of latest generation Silicon Carbide (“SiC”) power devices on 150/200 mm SiC wafers.